5 Parents Share Surprise Costs of Parenting—and How They Overcame Them

Until you become a parent (and even when you do), it's hard to imagine how your finances will change throughout your parenthood journey. To give you a peek at what that could look like for you, we partnered with Acorns to speak with five Babylist families and learn how having children impacted their finances, what they wish they had known when they were new parents and how they’re saving and investing as their kids get older. 

Ahead, read up on parent-approved tips for navigating your own financial plans and find out how you can jumpstart your family savings with Acorns Early Invest—a simple, flexible investment account that gives your kid’s money a chance to grow with them. The best part? They use that money in any way that benefits them over the years, from extra curricular activities to college.

Surprise #1: Navigating economic changes 

There are some things you just can’t plan for. When Gina Sweet, a Babylist mom of 2, got pregnant in 2021, she had no idea how expensive groceries would get, that there’d be a pandemic and a formula shortage or what daycare costs would be annually. “Life kept getting more expensive and the income stayed still, so we were wildly unprepared for what was to come,” she said. “I wish I knew that expenses are not linear.” 

Because of the pandemic, she didn’t want to send her son to regular daycare. “We ended up working with our neighbors to do a nanny share and were both comfortable where we landed with the hourly rate,” she said. “What I didn't know was the extra thousands of dollars we'd pay annually in taxes because we were considered an employer.” 

With two kids in her crew, she’s also had to accept the kind of parent she is: one who prefers conveniences like store-bought meals and new gear versus secondhand. “I think you can be smart about how you spend, but as someone who prefers convenience, I don't have the dedication or desire to do things at a more efficient cost—I choose my sanity. And for that, you gotta pay up.”

Her Advice: To pad savings for unexpected costs (plus the ones saving her sanity), she opened an Acorns account that automatically invests money every month. Plus, Acorns can round every purchase you make up to the nearest dollar and automatically invest your spare change for you.

The average Acorns customer saves and invests over $44 every month in spare change alone.

Surprise #2: Being out of work longer than planned

Depending on your maternity leave benefits, you might find yourself on unpaid leave to take care of your newborn. “Pre-baby, I thought I knew how much time I wanted to take (unpaid time, after paid leave is over), and once I had the baby, I knew I needed more time,” Kristina McCarty, Babylist mom of 2, said. “So I took a bit longer maternity leave than I initially planned, and I wish we would have discussed that option or that it might happen.”

Luckily, McCarty and her husband were financially prepared for the extra leave, even though it wasn't necessarily where they saw their savings being used. And, they still had money set aside for a doula, an expense that was planned for. “We found a postpartum night doula to be the most essential thing we saved for. It was truly a lifesaver for us and our family. It sounds expensive or like a luxury, but as new parents who are sleep deprived, it ended up being the most crucial thing we saved for.”

Her Advice: Don’t be afraid to talk to friends or family who’ve had kids and find out how they managed their money. “My sister has kids and was very open about the cost of having a baby, childcare, gear and diapers, so I felt we were prepared. We researched costs and started saving before getting pregnant. There are always unexpected costs, but we did a pretty good job of setting aside money for bigger items.”

Surprise #3: Managing unexpected health emergencies

No one wants to think about their child having a health scare, but Alec Dibble, a Babylist dad to a six-year-old, had to navigate one when his son was born prematurely at 29 weeks. “The 69-day NICU stay was incredibly expensive,” he said. “It spanned into the next year, so we had to pay the $15K out-of-pocket max twice.”

And it wasn’t just the medical bills that added up, he said. “We were also at the hospital so much that we ended up paying a lot for takeout and snacks. It was hard to coordinate hospital visits, breast pumping and eating healthy.”

His Advice: “I would try to save at least $500 a month throughout the pregnancy and even before that purely for kid-related expenses. By the time the birth happens, that would add up to a decent savings. I think doing a cash fund for the baby shower instead of having a bunch of little items that we may or may not use would have been more helpful when buying expensive things like strollers, cribs and car seats.”

Surprise #4: Becoming a single parent

Single parenthood is an experience that comes with a lot of “figuring it out.” For Haven Wertz, Babylist mom of 1, navigating it with her then 2-year-old was not a part of her plan; it took some adjusting, like shopping secondhand, skipping takeout and hunting for deals. “As a single mom to one, life has been full of ups and downs,” she said. “Raising a child with an ex comes with countless challenges, especially around finances. Staying organized and presenting things in writing is key.” 

Now that her son is 15, their financial process is more settled. “His dad and I, though no longer together, split his costs evenly,” she said."I made a spreadsheet to track expenses with a column for both of us. That way, if he spends $600 on baseball and I pay a $600 medical bill, our costs cancel each other out and there's no need to exchange money. That system has helped us save for bigger expenses too. We recently agreed to contribute $5-8K each to help buy our son a car when he turns 16. Our son has saved up about $3K he may contribute as well. That is a huge win for which I am grateful!"

Her Advice: “My son has had a college fund since he was 2—what started as a $50 a month contribution is now much more. I’m glad I started it even though it didn’t feel like I could afford it then,” Wertz said. “But the best thing I’ve done is teach him to manage his own money. He has a debit card and saves everything he earns or is gifted (hence that $3K that may go towards his car).” 

As your kid gets older, an account with flexibility can be key. Unlike 529 plan accounts, which are limited to qualified education expenses and Roth IRA rollover investments, Acorns Early Invest can be used in any way that directly benefits your kid — that could be college, a first car, extra-curricular activities, and so much more.

Surprise #5: Going from a two-income household to one

Before getting pregnant, Amylia Ryan, a Babylist mom of 2, took a personal finance class to learn how to budget for a family. But, when their baby was just 2-months-old, her husband got laid off.

“It was a huge financial blow that we weren't expecting at all, but we were able to start using government programs immediately, so the cost of things like formula and well-baby visits were totally covered. I had planned to breastfeed but ended up not being able to—if we hadn't had WIC (Special Supplemental Nutrition Program for Women, Infants and Children), the cost of formula alone would've put us in debt.” The biggest lesson she learned from that time? “Kids cost money no matter what,” she said. “But even through my husband losing his job and our only income being my student loans for a few months (up until our son was about 8 months old), we still made it work. Our son never went hungry, he had some good toys to play with, he had all of his pediatrician appointments and hit all of his developmental milestones. He was still able to thrive even when we felt like we were in financial dire straits.”

Her Advice: “We use a budget sheet to calculate exactly how much money we can put toward things like extracurriculars (we pay for gymnastics class 4x per year), childcare (we know our oldest will go to day camps every summer and can anticipate those costs) and medical costs,” she said. “We didn't know back when they were born that we'd need to set aside money for that, but after the second year in a row [of medical emergencies], we started setting aside medical expense money so that we're not surprised if (and when) it happens again.” 

If you’re just starting to think of ways to save for your newborn’s future, Acorns Early Invest lets you invest for your kids with the money you've got now. $5 a day may not sound like much, but give it a chance to grow and it could have a huge impact on your kid's future.

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Acorns Early Invest is a custodial UGMA/UTMA account. Assets in a custodial account are the property of the minor. Each Early Invest account identifies a beneficiary who will  have complete control over the Custodial Assets when he or she reaches the default age of transfer determined by the beneficiary’s state of residence or on reaching the age of transfer as elected by you, although such elected age must be at least eighteen (18) years old.

Spare change invested with Round-Ups® is transferred from your linked funding source (checking account) to your Acorns Invest account when activated. Round-Up investments from an external account will be processed when your Pending Round-Ups reach or exceed $5.

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